UK Faces Worklessness Crisis: IPPR Warns of Economic Challenges
IPPR report highlights record 4.3m worklessness due to ill health, threatening UK economy. Calls for benefits system reform and workplace adaptations to address crisis and boost productivity.
The United Kingdom faces a significant challenge as worklessness due to ill health reaches unprecedented levels, potentially hindering economic growth plans. A recent report by the Institute for Public Policy Research (IPPR) warns of a path towards "disease and bankruptcy" if urgent action is not taken.
The IPPR, a think tank established in 1988, projects that worklessness due to ill health could reach a record 4.3 million by the end of the next parliament. This alarming trend is partly attributed to the aftermath of lockdowns, which created an estimated 900,000 "missing workers" at a cost of £5 billion in lost tax receipts this year alone.
"For too long, the default political answer to this country's health crisis has been more of the same: more doctors, more hospitals, rinse and repeat. This commission now proves that disease and bankruptcy beckon if we unthinkingly continue with this ineffective approach."
The report emphasizes the clear links between "health and wealth," suggesting that NHS reform is crucial to addressing worklessness. It highlights a concerning increase in the number of people living with multiple health conditions, affecting both young and old.
According to the Office for National Statistics (ONS), established in 1996, there are currently 2.8 million people classified as economically inactive due to ill health. This figure represents the highest level since records began and comes against a backdrop of growth mainly fueled by immigration over the past decade.
The IPPR report reveals that in a typical workplace of 25 staff today, eight employees will have at least one long-term condition on average, compared to six in 2014. This trend is expected to continue, with the share of adults over 30 with a long-term health condition projected to rise from 14.3 million in 2030 to 18.2 million by 2040.
The crisis extends beyond physical health, with mental health issues playing a significant role. NHS data shows that the number of teenagers with "a probable mental disorder" increased from one in ten in 2017 to one in six in 2020.
To address these challenges, the IPPR proposes several solutions:
- Focus on prevention rather than cure
- Adapt workplaces to accommodate employees with health conditions
- Reform the benefits system to encourage work participation
- Introduce a "Fair Work" charter with tax incentives for supportive employers
- Implement a "right to try" work program for those on sickness benefits
The report also calls for a reevaluation of the benefits system, which has seen costs surge, particularly for conditions linked to mental health. The Office for Budget Responsibility (OBR), created in 2010, estimates that spending on health and disability benefits will rise from £65.7 billion this year to £90.9 billion in 2028-29.
As the UK grapples with these challenges, it risks becoming the literal "sick man of Europe," a term originally used to describe the Ottoman Empire in the 19th century. The country's lagging productivity, combined with increasing health issues among workers, poses a significant threat to economic growth and public service funding.
The IPPR's recommendations align with global trends, such as the "right to disconnect" concept originated in France in 2017. However, the UK government and opposition parties have yet to present concrete plans to address this growing crisis.
As the situation unfolds, it is clear that innovative solutions and cross-party cooperation will be essential to navigate the complex interplay between health, work, and economic prosperity in the United Kingdom.
